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Moore Stephens expects vessel-operating costs to rise

Vessel operating costs are expected to rise by almost three per
cent in both 2014 and 2015, according to a new survey by accountant and
shipping consultant Moore Stephens.

The survey is
based on responses from key players in the international shipping industry, predominantly
ship-owners and managers in Europe and Asia. Those responses revealed that
vessel operating costs are expected to increase by 2.9 per cent in both 2014
and 2015, with crew wages and repairs and maintenance the cost categories
likely to increase most significantly.

Crew wages are expected to increase by 2.4 per cent in 2014 and by
2.6 per cent in 2015, with other crew costs thought likely to go up by 1.9 per
cent and 2.1 per cent respectively for the years under review.

The cost of repairs and maintenance, meanwhile, is expected to
escalate by 2.3 per cent in 2014 and by 2.4 per cent in 2015.

P&I insurance costs are expected to go up by 2.0 per cent in
2014 and by 2.2 per cent in 2015, compared to the increases of 1.6 and 1.8 per
cent predicted in for hull and machinery insurance costs.

Dry-docking costs are expected to rise by 2.1 per cent in 2014 and
by 2.2 per cent in 2015, while expenditure on spares is expected to increase by
2.1 per cent and by 2.2 per cent over the same period.

Meanwhile, respondents anticipate increases of 1.7 per cent and
2.0 per cent respectively in the cost of lubricants. The cost of stores is
expected to increase by 1.7 per cent and 1.9 per cent respectively for 2014 and
2015.

As was the case in last year’s survey, management fees are deemed
likely to produce the lowest level of increases in both 2014 and 2015, at 1.2
per cent and 1.5 per cent respectively.